How to Calculate Gratuity in UAE: Your Ultimate Guide to End-of-Service Benefits
16/12/2025
YOUNG AND RIGHT ACCOUNTING & TAX CONSULTANCY
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At Young & Right, a premier accounting and tax consultancy firm based in Dubai, we specialize in guiding individuals and businesses through the financial complexities of the UAE, including medical costing in Abu Dhabi. Healthcare is a significant part of personal and corporate budgets in Abu Dhabi, where both Emiratis and expats face unique challenges. This blog provides insights into medical insurance, clinical costing, and effective financial management strategies, with a focus on DOH clinical costing standards, clinical costing services in Abu Dhabi, and compliance with Abu Dhabi clinical costing standards.
Abu Dhabi’s world-class healthcare system, regulated by the Department of Health (DOH), is renowned for its quality but can be costly without proper planning. With mandatory health insurance and the introduction of clinical costing frameworks, understanding your options is crucial for financial stability. In this article, we’ll explore Abu Dhabi’s healthcare system, compare public and private options, and offer practical financial advice on budgeting, tax optimization, and compliance with DOH regulations. Whether you’re an expat, resident, or business owner, this guide will help you navigate medical costing in Abu Dhabi effectively, including strategies for DOH clinical costing and implementing the DOH clinical costing.
Abu Dhabi’s healthcare system, overseen by the DOH, blends public and private providers to cater to a diverse population, with expats making up a significant portion. Public facilities like Sheikh Shakhbout Medical City and Sheikh Khalifa Medical City offer subsidized care for UAE nationals, while private hospitals such as Cleveland Clinic Abu Dhabi and Mediclinic Al Noor provide advanced services for expats. Healthcare spending in the emirate is substantial, with significant growth projected by 2025 due to rising demand and medical tourism.
Since 2016, health insurance has been mandatory in Abu Dhabi, with employers required to provide coverage, often through the Thiqa plan for nationals or the Basic Health Insurance Plan for employees earning under 5,000 AED monthly. Expats frequently opt for premium plans for broader coverage, including dental and maternity benefits. Understanding medical costing in Abu Dhabi, including clinical costing frameworks, is vital for managing expenses and ensuring compliance with DOH regulations. This extends to the purpose of clinical costing, which aims to generate meaningful cost data for healthcare services, and the clinical cost data collection process across Abu Dhabi.
Accessing healthcare in Abu Dhabi hinges on cost, convenience, and coverage. Public healthcare is subsidized for UAE nationals and insured residents, accessible with a health card (500 AED for adults, 100 AED for children under 10, 200 AED for ages 10–17). Consultations cost 50–200 AED with up to 50% discounts, but wait times are longer, and specialist visits require GP referrals. Expats face subsidy limitations, making planning essential.
Businesses can classify health card costs or public healthcare subsidies as operational expenses, reducing taxable income under the UAE’s 9% corporate tax. At Young & Right, we help structure these for maximum deductions and DOH compliance, including alignment with costing standards in Abu Dhabi.
Private healthcare is preferred by expats for its efficiency, advanced technology, and multilingual staff. Costs are higher: GP visits range from 200–500 AED, and specialists charge 400–800 AED. Premium facilities like Burjeel Hospital or NMC Specialty Hospital command higher fees for reputation and amenities. Insurance typically covers 80% of costs, with 20–30% co-pays; out-of-network services add 20–50% surcharges. Private care aligns with global health standards, offering comprehensive medical services.
For businesses, private insurance enhances employee satisfaction and retention, offsetting recruitment costs. We recommend a cost-benefit analysis to compare premiums versus savings and factor in tax deductibility. Public healthcare suits smaller firms, while private offers flexibility for larger organizations. For expats, private care in Abu Dhabi is often the go-to for comprehensive health coverage, supported by healthcare facilities providing direct patient care.
The implementation of clinical costing standards and guidelines in Abu Dhabi, as mandated by the Department of Health (DOH), is transforming the healthcare landscape across the UAE. These standards, driven by a robust clinical costing methodology, enable healthcare providers to accurately track and report patient-level costs, fostering transparency and efficiency. The strategic importance of these standards lies in their ability to enhance financial accountability, optimize resource allocation, and support value-based healthcare, benefiting healthcare providers across the UAE.
Patient-level costing ties resources to encounters and reconciles to the GL, meeting DOH requirements and strengthening audit readiness, budgeting discipline, and board-level financial oversight.
Standardized methods reveal high-cost steps, right-size overheads, and target bottlenecks; providers streamline pathways, redeploy staff, and unlock capacity without compromising care quality.
Comparable cost data supports fair pricing, bundled payments, and payer negotiations—aligning incentives to outcomes over volume and advancing sustainable, value-based funding in Abu Dhabi.
With practical implementation strategies for DOH clinical costing, governance, and tooling, Young & Right de-risks compliance, accelerates the costing journey, and scales improvements sustainably.
Medical costs in Abu Dhabi for 2025 reflect inflation, demand, and the emirate’s high healthcare standards. Costs are tailored for non-residents/expats without full subsidies, in AED (≈0.27 USD/AED). Variations depend on facility, location, doctor experience, timing, and insurance coverage. These figures tie into broader healthcare cost considerations, including cost allocation and costing systems.
Doctor visits are the entry point to healthcare in Abu Dhabi, with costs varying by doctor seniority, facility type, and timing. Public clinics are more affordable, while private hospitals offer faster access and advanced care, making them a popular choice for expats.
→ General Practitioner (GP) : Public 50–200 AED | Private 150–400 AED. Basic needs; co-pay 30–120 AED.
→ Pediatrician : Public 100–250 AED | Private 300–600 AED. Referrals needed; home visits add 300–600 AED.
→ Dermatologist : Public 150–350 AED | Private 350–800 AED. Cosmetic procedures cost more; coverage varies.
→ Cardiologist : Public 200–450 AED | Private 500–1,800 AED. Pre-authorization required.
→ Orthopedist : Public 200–450 AED | Private 600–1,800 AED. X-rays add 250–600 AED.
→ Dentist (General) : Public 100–250 AED | Private 350–600 AED. Specialists higher; limited insurance.
→ Other Specialists (e.g - Endocrinologist) : Public 150–350 AED | Private 400–800 AED.
→ Teleconsultations : 150–300 AED. Ideal for follow-ups; tax-deductible for businesses.
Emergency room costs range from 600 AED for basic care to 25,000 AED+ for severe cases requiring surgery or ICU. Key components include:
→ Initial Consultation : 150–600 AED
→ Diagnostics (MRI/CT) : 1,000–3,500 AED
→ Minor Procedures : 1,800–5,000 AED
→ Specialist Consultations : 350–600 AED per specialist
Insurance covers 20–25% co-pays, but uninsured individuals face upfront payments. Businesses should invest in emergency coverage, while individuals need to budget approximately 12,000 AED annually for emergencies.
Private hospital stays cost 6,000–25,000 AED per day, depending on room type and treatment. Basic insurance covers 80%, with a 20% co-pay (capped at 600 AED/visit, 1,200 AED/year). A 3-day stay for appendicitis, including surgery, ranges from 18,000–35,000 AED. Public hospitals are more affordable but have longer wait times. Businesses can deduct premiums for tax benefits, and Young & Right assists in optimizing these classifications, including costing results against financial statements.
Medications require a 30% co-pay, capped at 2,000 AED/year. Prescription costs range from 60–250 AED, with chronic conditions like diabetes fully covered. Specialty drugs can cost thousands monthly, necessitating premium plans. Businesses can save by negotiating deductibles or bulk purchasing, aligning with Abu Dhabi clinical cost data collection.
Dental care is often excluded from basic insurance. Cleanings cost 350–600 AED, root canals 1,200–3,500 AED, and orthodontics 12,000 AED+. Emergency dental treatment costs up to 600 AED. Dental riders are tax-efficient for families, and preventive care reduces long-term costs.
Maternity care includes prenatal care (4,500–8,000 AED) and delivery (12,000–30,000 AED). Basic insurance waives some co-pays, but registration by the 7th month is required. Premium coverage is essential for complications. Budget 25,000–60,000 AED for total costs, with maternity benefits deductible for businesses.
At-a-glance cost ranges—preventive care, chronic care, and tests :
→ Preventive Care : 600–4,000 AED (basic plans); executive plans start at 6,000 AED.
→ Chronic Care : Co-pays of 20–30%, with costs reaching thousands annually.
→ Blood Tests : 250–1,200 AED; Ultrasound: 900–3,500 AED.
Businesses can deduct wellness screenings as employee health benefits, supporting dedicated clinical costing efforts.
Medical costing in Abu Dhabi also encompasses clinical costing, a DOH-mandated process for healthcare providers to calculate and report patient-level costs. The Abu Dhabi Clinical Costing Road Map 2025, launched in November 2024 as part of the Value Based Funding Framework Project, promotes value-based healthcare through standardized data collection. This involves a six-stage process for patient-level clinical costing:
→ Identify Expenses : Gather general ledger expenses, including third-party costs, mapped to Cost Types.
→ Create Cost Ledger : Classify cost centers (direct vs. overhead) and map to Cost Buckets.
→ Allocate Overheads : Distribute overheads using reciprocal or step-down methods.
→ Create Costing Products : Define patient and non-patient products for reporting.
→ Allocate Costs to Patients : Assign costs to individual encounters using linking rules.
→ Data Review : Validate and reconcile data, submitting via the Shafafiya platform by July 15, 2025.
Providers must register a clinical costing contact person, integrate systems, and document methodologies for audits. Non-compliance risks financial sanctions. The DOH clinical costing standards apply to all healthcare providers across Abu Dhabi delivering direct patient care, excluding stand-alone pharmacies and diagnostic labs. Young & Right assists with cost mapping, system integration, and audit preparation to ensure compliance and efficiency, including clinical cost data collection technical documents and costing principles.
Several factors drive variations in medical costs:
→ Location : Premium areas charge 100–250 AED more than suburban regions.
→ Insurance : Out-of-network services increase costs by 20–50%.
→ Inflation and Demand : Annual increases of 5–10%.
→ Tourist Status : Tourists pay higher private care fees without local insurance.
→ Doctor Seniority : Experienced doctors charge 20–30% more.
→ After-Hours Care : Adds 50–100% to fees.
→ Post-COVID : Supply chain issues have raised drug prices.
These factors underscore the need for healthcare providers to accurately track costs under Abu Dhabi’s clinical costing standards.
In the emirate of Abu Dhabi, Young & Right supports Abu Dhabi healthcare with a standardized clinical costing framework that aligns with the Abu Dhabi Department of Health (DOH) and the Ministry of Health and Prevention. Our work is designed to help healthcare providers progress their costing journey while staying audit-ready and in full compliance with DOH standards.
We guide individuals, employers, and healthcare care providers to select cost-effective private plans, optimize premiums and benefits, and avoid coverage gaps. This advisory complements provider finances by reducing leakage at the point of care and supporting costing standards and compliance across Abu Dhabi.
We maximize policy value through benefit mapping, pre-authorization support, and clean claims practices that cut out-of-pocket exposure. As organizations implement clinical costing, our approach keeps payer rules aligned with service pricing, sustaining margins while your costing journey matures.
We streamline health card enrollments and documentation for employees and families so healthcare providers must spend less time on admin. Our processes reflect Abu Dhabi regulations and federal requirements under the ministry of health and prevention, ensuring that healthcare providers remain compliant without operational drag.
Our clinical costing solution and tooling help providers implement clinical costing—from data integration to rules setup—under DOH clinical costing services. We configure a maintainable clinical costing system that fits your EMR/ERP reality, meeting clinical costing standards and guidelines while keeping methods transparent for clinicians.
We implement patient-level costing because patient-level costing involves tracing resources at the encounter level. Following the Abu Dhabi clinical costing guideline and clinical costing standards in Abu Dhabi, we prepare audit-ready packs and submit cost data to the department, ensuring outputs match the hospital patient costing standards expected by DOH.
We install governance that ties costing methods to policy, creating a standardized clinical costing framework with clear ownership. This anchors clinical costing standards and value-based care and supports costing standards and value-based funding; in short, clinical costing services provide the structure to ensure that healthcare providers meet requirements—now and as regulations evolve.
We help healthcare providers meet DOH standards, ensuring compliance with Abu Dhabi’s clinical costing standards and the needs of Abu Dhabi’s healthcare ecosystem.
At Young & Right, we simplify medical costing in Abu Dhabi with tailored financial strategies:
→ Tax Optimization : Deduct premiums and clinical costing expenses under the 9% corporate tax.
→ Policy Reviews : Conduct annual insurance and costing process reviews to identify gaps.
→ Emergency Funds : Maintain 6–12 months of expenses for medical or compliance costs.
→ Preventive Care : Invest in wellness to reduce long-term expenses.
→ Consult Experts : Contact DOH or Young & Right for integrated healthcare-financial planning, including health information exchange compliance.
Navigating medical costing in Abu Dhabi is essential for residents, expats, and healthcare providers. At Young & Right, we provide expert guidance on managing healthcare expenses, insurance, and clinical costing compliance across healthcare providers in Abu Dhabi. Our services optimize coverage, tax deductions, and regulatory adherence, ensuring financial stability. Contact us today for personalized advice and efficient healthcare financial planning in Abu Dhabi, including support for the new Abu Dhabi clinical costing initiative and value-based healthcare transformation.
Whether you’re a resident, expat, or healthcare provider, our expert team at Young & Right helps you manage medical expenses, optimize tax benefits, and stay compliant with DOH clinical costing standards.
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